A major renewable energy zone in New South Wales could have up to $100 billion in investment potential, the New South Waled Government has revealed.

Releasing the results of its registration of interest (ROI) process to gauge the level of interest in investment in the Hunter-Central Coast REZ (renewable energy zone), NSW Treasurer and Energy Minister Matt Keen says the government has received commercial interest in 87 renewable energy and storage projects which combined represent almost 40 gigawatts of power and more than $100 billion of potential investment.

This includes:

  • 24 solar projects
  • 20 wind projects (13 onshore/7 offshore)
  • 35 large-scale batteries; and
  • 8 pumped hydro projects.

Put together, the projects have the potential to deliver more than 100, gigawatt hours of renewable energy a year – equivalent to the annual output of ten coal-fired power stations.

Situated within the Hunter and Central Coast region north of Sydney, the Hunter Central Coast REZ is part of the New South Wales Government’s strategy to halve its carbon emissions by 2030 and to find new sources of employment within the region as coal-fired power generation activity winds down.

(According to the ABC, soon to be released data from the University of Newcastle will show that more than 16,000 people rely on the coal industry for employment throughout the Greater Hunger Region.)

It aims to connect multiple renewable energy generators and storage projects (such as batteries and pumped hydro) that can support system reliability as the state’s ageing coal-fired power stations retire and to provide cheap, reliable and clean electricity to homes, businesses and industry across the region.

The region is seen as an ideal location for a renewable energy zone on account if its ample supply of renewable resources along with opportunities to utilise existing power stations, rehabilitated mining land, electricity network infrastructure, port and transport infrastructure and a skilled workforce.

Still, barriers remain amid opposition to wind farms in particular among some local residents and landholders.

The response to the Hunter-Central Coast ROI follows earlier registration of interest amount to a combined 95 GW of power across other renewable zones in the Central West Orana, New England and South West regions.

It is expected that the Hunter-Central Coast REZ will be formally declared as a renewable energy zone under the NSW Government’s Electricity Roadmap legislation by mid-2022.

Responses to the ROI process will help to inform the timing, capacity, design and location of the REZ.

This includes matters such as optimal network design, the geographic area and further market engagement along with the timing, capacity and boundaries of the zone.

Treasurer and Energy Minister Matt Kean said the ROI outcome shows that the Hunter and Central Coast will continue to be the energy powerhouse of NSW long into the future.

“These results show that energy investors see the Hunter and Central Coast as some of the best investment destinations anywhere in the country, which will translate into jobs and prosperity for the region,” Kean said.

“Renewable Energy Zones are vital to ensuring the future reliability and affordability of electricity in NSW as traditional coal fired power stations close down over the coming decades.”

Parliamentary Secretary for the Central Coast, Adam Crouch, said that the zone will not only attract investment in clean energy but also underpin the growth of new low carbon industries such as green hydrogen, ammonia and metals production.